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Published: 20 September 2024

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Evidence from a mortgage lender’s survey suggests first time buyers massively under-estimate how long the purchase of a home actually takes.

Aldermore undertook a large survey in June, of some 2,000 prospective first time buyers and 500 actual FTBs. Prospective purchasers under-estimated the homebuying process by nearly five months.

Recent actual FTBs spent the longest time viewing properties – it took an average of four months before they found their ideal property. Liaising with estate agents took over a month longer than people expect.

 

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Published: 20 September 2024

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A body representing over 300 mortgage lenders and financial services firms wants a total rethink of the housing market. 

UK Finance says it wants to work with the new Labour government to:

Support home ownership by helping first-time buyers to purchase the homes they need, through making permanent the current temporary nil-rate bands on stamp duty up to £425,000; increasing access to shared ownership schemes; and reviewing whether prudential rules introduced after the global financial crisis have made it too difficult for potential borrowers to obtain a mortgage;

Helping “last time” buyers through an independent advice service to assist older homeowners with their housing needs and minimising upfront costs for those choosing to downsize, such as a stamp duty exemption. The government’s housing target should also include homes suitable for older buyers in places they want to live;

Support the home-building industry by ensuring that the overhaul of the planning system makes it simpler, and more rules based. Shorter development timescales and consistency in planning decisions will help give developers the certainty they need to deliver the government’s new homes target;

Support the rental market by reviewing the Local Housing Allowance annually so it keeps pace with rents. Creating a government sponsored registration system for owners of rental properties will both ease the compliance burden on landlords and help local authorities, mortgage lenders and tenants identify rogue landlords or sub-standard properties. Providing tax incentives could also encourage landlords to make green upgrades to their properties.

Charles Roe, director of mortgages at UK Finance, says: “Everyone needs a safe, secure, and affordable home, so we welcome the government moving quickly to reduce the UK’s housing shortfall and get more people onto the housing ladder.

“However, the size of the challenge means we need strong action, from both the public and private sectors, right across the UK’s housing market.

“Our new report sets out a range of recommendations to complement the government’s plans. These include making the planning process simpler, removing some of the barriers first-time buyers face and ensuring we’re meeting the housing needs of our ageing population. Improving standards in the private rental sector and supporting the social and affordable rental sectors will also be key.”

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Published: 18 September 2024

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While economic forecasters are predicting fair weather for the property sector this Autumn, there is still one big cloud on the horizon – The Budget.

What the Labour leadership has described as a ‘painful’ fiscal event is due to take place on October 30^th and it’s a constant reminder that into each life, a little rain must fall.

The August rate cut combined with hopes of another to come (probably in November) sparked a revival in both seller and buyer confidence.

And Rightmove’s latest House Price Index appeared to reflect this showing the average price of a house coming up for sale increasing by 0.8% this month – which is an annual rise of 1.2%.

The portal also says that estate agents’ stock hit a 10-year high as the ‘usually busier’ Autumn market got underway earlier than normal after the August holiday lull.

In fact, the good news has been coming thick and fast in recent weeks as wage increases have outpaced inflation and transaction numbers have started ticking over nicely.

 After a long period in which the sector has had to prove its resilience against a backdrop of higher rates and a cost-of-living crisis, the latest round of stats have come as a blessed relief.

Going for growth

But then we remember the prospect of a highly-flagged gloom-laden Budget. The spectre at the feast.

It’s certainly true that fears over tax hikes could mean the champagne is kept on ice for a while.

With pledges that income tax, national insurance and corporation tax won’t be candidates for increases, commentators believe that Chancellor Rachel Reeves may have set her sights on Capital Gains Tax, Inheritance tax and even Stamp Duty.

All of these taxes could impact property sales or timing of property sales in one way or another.

And, of course, although the signs are certainly there that the market is picking up, the truth is that affordability is still very much an issue for many first-time buyers who are having to dig deeper paying higher rents while at the same time trying to save for deposits.

This government was elected on a ‘going for growth’ ticket and much of that growth is dependent on building more homes – 1.5m of them by the end of this Parliament.

There’s a long road ahead, but taking a backward step now would be disastrous. The government has said it wants more home ownership and therefore, more affordable homes.

The market is doing its thing – bouncing back after some tough times. The best thing Rachel Reeves could do now is to get out of the way and leave us to get on with it.

Details

Published: 18 September 2024

Hits: 8305

While economic forecasters are predicting fair weather for the property sector this Autumn, there is still one big cloud on the horizon – The Budget.

What the Labour leadership has described as a ‘painful’ fiscal event is due to take place on October 30^th and it’s a constant reminder that into each life, a little rain must fall.

The August rate cut combined with hopes of another to come (probably in November) sparked a revival in both seller and buyer confidence.

And Rightmove’s latest House Price Index appeared to reflect this showing the average price of a house coming up for sale increasing by 0.8% this month – which is an annual rise of 1.2%.

The portal also says that estate agents’ stock hit a 10-year high as the ‘usually busier’ Autumn market got underway earlier than normal after the August holiday lull.

In fact, the good news has been coming thick and fast in recent weeks as wage increases have outpaced inflation and transaction numbers have started ticking over nicely.

 After a long period in which the sector has had to prove its resilience against a backdrop of higher rates and a cost-of-living crisis, the latest round of stats have come as a blessed relief.

Going for growth

But then we remember the prospect of a highly-flagged gloom-laden Budget. The spectre at the feast.

It’s certainly true that fears over tax hikes could mean the champagne is kept on ice for a while.

With pledges that income tax, national insurance and corporation tax won’t be candidates for increases, commentators believe that Chancellor Rachel Reeves may have set her sights on Capital Gains Tax, Inheritance tax and even Stamp Duty.

All of these taxes could impact property sales or timing of property sales in one way or another.

And, of course, although the signs are certainly there that the market is picking up, the truth is that affordability is still very much an issue for many first-time buyers who are having to dig deeper paying higher rents while at the same time trying to save for deposits.

This government was elected on a ‘going for growth’ ticket and much of that growth is dependent on building more homes – 1.5m of them by the end of this Parliament.

There’s a long road ahead, but taking a backward step now would be disastrous. The government has said it wants more home ownership and therefore, more affordable homes.

The market is doing its thing – bouncing back after some tough times. The best thing Rachel Reeves could do now is to get out of the way and leave us to get on with it.